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rehabbing-can they sue while commencing or in rehab?


gya
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have a friend who hides in fear from her two small student loans--they add up to less than 6,000 in original principal, but of course now, due to interest--9,000 or more---wildly varying amounts on her report--- she finally was pursuaded to pull.

Her horror is being sued(she has no assets/income), but I assume they know she is poor, plus I do not know how often they sue.

if she rehabs, they can't sue her or can they? She thinks by hiding they can't sue, but I hear they sue without service.What is this called--what law

cites this? Has this happened to anybody?So is it airtight they cannot sue if she is out of default in rehab, or is rehab not quite out of default until it ends, or so many payments are made?

Thank you for insights.

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  • 2 weeks later...
have a friend who hides in fear from her two small student loans--they add up to less than 6,000 in original principal, but of course now, due to interest--9,000 or more---wildly varying amounts on her report--- she finally was pursuaded to pull.

Her horror is being sued(she has no assets/income), but I assume they know she is poor, plus I do not know how often they sue.

if she rehabs, they can't sue her or can they? She thinks by hiding they can't sue, but I hear they sue without service.What is this called--what law

cites this? Has this happened to anybody?So is it airtight they cannot sue if she is out of default in rehab, or is rehab not quite out of default until it ends, or so many payments are made?

Thank you for insights.

No they should not sue while or if she is making payments. You are not out of default until after the rehab program is complete which should be just over a year. We could only forward accounts on for garnishment if the due diligence was 180 days past due and if we had verifiable employment.

Tell her she cannot hide..if the government wants to find her, they will.

I would suggested she consolidate with the direct loan program. If she has no income, she will be assigned a ZERO payment plan thru the income contingent repayment plan!!!

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